cocoa options

cocoa options

December 13, 2016

Raw sugar futures fell into bear market territory Tuesday as traders exiting long positions largely looked past a boost to gasoline prices in Brazil.

Raw sugar for March delivery dropped 3.4% to end at 18.60 cents a pound on the ICE Futures U.S. exchange, the lowest close for the most active contract since June 2.

The sugar market is still heavily long, with the bulls outweighing the bears by 174,459 contracts as of last Tuesday, according to U.S. Commodity Futures Trading Commission data. At the close, the market was down 22% from its most recent high reached Oct. 5, pushing it into bear market territory.

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cocoa futures news

cocoa futures news

November 23rd, 2016

Speculators, who have been big players in ag markets such as soybeans and sugar this year, will remain “quite active” in 2017, Rabobank said – naming cocoa as its most bullish bet for next year, and coffee the most bearish.

The appeal of ags to hedge funds “is unlikely to change in 2017″, Rabobank said, citing the quest by investors for yield at a time of low borrowing costs.

“Interest rates are expected to rise only very slowly, keeping investors looking for higher returns,” the bank said, adding that index funds may also “be back in the market toward the second half of next year”.

“The interest in commodity index funds, which offer a hedge against inflation, may be rekindled if fear of inflation reappear,” with Rabobank noting “a few signs”, from the likes of bond market spreads, that the pace of global price rises may “slightly increase” next year.

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cocoa futures news

cocoa futures news

April 16th, 2015

Cocoa futures rallied, following stronger-than-expected European first-quarter grind data – although a leading broker cautioned against investors getting carried away.

European cocoa grind, which is the volume of beans being processed into butter and powder, fell by 1.6% year-on-year to 337,706 tonnes in the January-to-March period.

That represented the weakest start to a year, in volume terms, since 2010.

However, the figure beat analyst expectations for grind volumes to fall by 3-7%, undermined by squeezed margins for processors

Cocoa futures rallied on the news to one-month highs of $2,885 a tonne in New York, and £1,976 a tonne in London, for May delivery.

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